Posted on 04/02/2017 7:48:49 PM PDT by ForYourChildren
Before you begin to mention the grandiose gains in the stock market since Obama took office, bear in mind a few things.
1. The Federal Reserve lowered interest rates to zero percent, making bonds and interest bearing accounts untenable for retirees, effectively forcing people into stocks. Also, the Fed's balance sheet went from ~$750b to $4.5t over that time frame -- rigging both equity, currency, and bond markets over Obama's entire 8 year term.
{..snip..}
(Excerpt) Read more at zerohedge.com ...
Obama is the last 8 years in the chart above.
Average is 1.6.
Never above 3.0.
THE WORST IN HISTORY!!!
“Obama First President Since Great Depression Not to See 3% GDP Growth”
By Terence P. Jeffrey | March 1, 2017
Impressive legacy, 0golfster!
There was a second side to this - torpedo whomever followed Obama.
Most young to middle age people think interest rates are less than 3% and that's how it is. Free money!!
If interest rates go to historical levels (around 4-5%), there will be such a brakes screeching sound in the economy, it will be huuuuge.
“Nearly 4,000 EPA Regulations Issued Under President Obama”
https://www.atr.org/nearly-4000-epa-regulations-issued-under-president-obama
Red Tape Rising 2016: Obama Regs Top $100 Billion Annually
Zero interest rates only makes sense if the pool of savings is infinite.
The Federal Reserve is reverse wealth machine - it steals from the poor and middle class, and gives to the rich and politically connected.
independent estimates of total regulatory costs exceeding $2 trillion annually
|
The whole set-up of the Federal Reserve stinks like a scam, too.
The government 'borrows' "money" (Federal Reserve Notes) from them which must be paid back... with interest.
This means that if we procured every single extant Federal Reserve Note and gave it to the Federal Reserve, we would "still owe them money."
Sounds like a pretty big scam to me... and it also explains why nobody seems to want an audit of the Federal Reserve.
It was the worst primarily because of zero percent interest rates. Muslims don’t believe in interest.
Maybe, maybe not.
As it says at the top of the thread, retiree money was forced into stocks.
Maybe some, or a lot, not all.
A lot stayed in "safe" places like banks, credit unions, in mattresses, etc.
Some retirees who had saved maybe a million or 2 were planning on taking out CDs and living high off the 5% interest plus their retirement.
They would have been spreading the cash around, helping the economy.
Instead, they are holding on to all they can, knowing that with inflation they are going to have to spend down the principle to survive.
I know of several folks in this position.
If interest rates go back to 5% they will put that cash into CDs, and start spending.
That will boost the economy.
5% interest rates seem fair to everyone.
Affordable for the borrower, enough income for the lender.
Yep, even a zero percent interest rate could not save the Obama economy.
In all fairness, the economy first went into a tailspin in 2006 after Nancy Pelosi took over the House and began the Democrats ring of economic terror on America, Obama just finished the job.
And when the interest rate goes up, the cost of the National Debt will blow holes in any government budget.
Bingo. Which is why the Feds have kept the rate at the bottom, and have fought raising it and will continue to do so. Retirees are screwed.
Bingo. Which is why the Feds have kept the rate at the bottom, and have fought raising it and will continue to do so. Retirees are screwed.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.
